The New Jersey Board of Public Utilities’ New Jersey’s Clean Energy Program™ offers incentives aimed at encouraging residents to implement energy savings measures through the Home Performance with ENERGY STAR Program. The municipality can accomplish this action by implementing a general residential outreach effort to promote the Home Performance with ENERGY STAR program. In addition, the municipality could follow two approaches: the Contractor Request for Proposal (RFP) Approach and the Utility Partner Outreach Approach. 

Contractor Request for Proposal (RFP) Approach 

As part of the outreach effort, the municipality must select one or more municipally approved contractors to perform Home Performance with ENERGY STAR assessments through a competitive RFP/RFQ process that ensures a low price and high-quality assessment. The home energy assessment at a fixed rate is a program requirement. The selected contractors should already have an active business presence in proximity to the municipality and be an approved Home Performance with ENERGY STAR contractor. No funds are paid by the municipality; the municipality is responsible for vetting and selecting the approved contractors. This municipal vetting process makes it easy, safe, and cost effective for residents to complete the energy assessment and take advantage of the NJCEP incentives to reduce their energy usage and save money. This approach has proven to be an effective tool to increase residential energy efficiency. 

Utility Partner Approach 

This approach requires the municipality to partner with the utility in their outreach campaign, which must promote both the utility assessment program and the Home Performance with ENERGY STAR program offered by New Jersey’s Clean Energy Program (NJCEP). The only utility energy assessment programs that currently qualify for this partnership are New Jersey Natural Gas (NJNG) and South Jersey Gas (SJG), which offer a fixed price for Home Performance with ENERGY STAR qualified assessments. In some cases, the utility assessment offers additional benefits, such as energy-efficient light bulbs and installation of programmable thermostats in addition to the assessment. The Utility Partner Approach is only available for municipalities in NJNG or SJG utility service territories at this time. 

Why is it important? 

Homes are significant consumers of energy in New Jersey, accounting for approximately 24% of the annual statewide energy usage. Home improvements increase energy efficiency, reduce energy consumption and greenhouse gas emissions, and save homeowners money. Energy efficiency upgrades can also make a home more comfortable and provide an opportunity to address health and safety issues, such as poor indoor air quality. The potential for energy reductions and economic savings by participating in the Home Performance with ENERGY STAR and Comfort Partners programs are enormous. Consider the following:

• Owners of older homes are particularly vulnerable to rising energy costs. Homes built prior to the 1970’s oil embargo are often much less energy-efficient than newer units.

• More than half of the 80 million single-family homes in the United States were constructed before modern energy codes existed.

• Many homes are poorly insulated, have high levels of air infiltration, inefficient heating and air conditioning systems, and inefficient water heaters and appliances.

• About 40% of households report at least some winter drafts, and 60% complain of a room that is too warm in the summer.

• Energy efficiency assessments can identify sources of poor air quality and other safety and comfort issues in the home that can be addressed in recommended energy efficiency upgrades.

New Jersey’s Clean Energy Program’s Home Performance with ENERGY STAR Program (HPwES) offers generous rebates and low-interest loans for homeowners to upgrade their homes to more energy-efficient and comfortable dwellings. Approximately 40,000 homes in New Jersey have performed energy efficiency upgrades through participation in the program since 2006. HPwES not only saves energy and money, it also addresses health and safety issues prior to making a home more energy efficient.

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